5 During August, Boxer Company sells $349,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. The warranty liability account has a credit balance of $12300 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,700 in parts for repairs. The entry to record the customer warranty repairs is Multiple Choice Book Debit Warranty Expense $10,470, credit Estimated Warranty Liability $10,470 Debit Warranty Expense 57070, credit Intimated Warranty Luty $7070 Debit Estimated Warranty Liability $10,470: credit Parts Inry 510470 Debit Warranty Expense 58.700, credit Estimated Warranty billy 58,700 Debat Estimated Warranty bly 58.700, credit Parts Inventory $9,700